Seattle Small Business Blog

Finding ways to cut back on your spending can help you during a difficult economic period. Saving money is always good, but it’s a skill that becomes especially important during a recession.

“How is it even possible to save money during a downturn?” you might ask. It’s all about planning, cutting out the really frivolous costs, and changing the way you think about spending money. You can use these tips both at home with your family or in your business.

Here are some handy tips you can use to help you save money:

1. Pay important bills first. Decide what is most important to you and your family, or your business and your partners and agree to pay those bills first.
2. Save money on meals. Groceries and business meals are a huge, yet necessary, expense.

• Buy generic rather than name brands. They usually taste just as good but cost less.
• Order a tall cup of tea instead of a vente latte. In addition to being more wallet friendly, this could be more waist-friendly too!
• Buy non-perishable foods in bulk. Many items can be bought in bulk such as rice, canned foods, and frozen foods.
• Schedule business meetings in between meals and at coffee shops instead of restaurants. Brownbag your lunch and eat with your co-workers or employees instead and build up your relationship with them.
• Never shop on an empty stomach. Eat before grocery shopping; otherwise, you’ll wind up buying more junk and convenience foods because you’re hungry.
• Keep snacks in your office. If you absolutely have to run out in the afternoon if you get hungry between meals, you will have little choice but to spend the money. Keep snacks with you at work just in case.
• Make a list of what you need at the grocery store and stick to it. It really is that simple

1. Rent movies instead of going out. Have a movie night once a week. Sit down with some popcorn and watch a movie. This is a great way to spend quality family time, without much expense.
2. Only buy things that you have the money for right now. As much as you can, pay cash or debit instead of using a credit card.
3. Cook at home. If you go out to eat two or three times a week, cut back to once every two weeks or once a month. Instead, learn to cook at home. If you plan ahead and cook in quantities, you’ll save time and money by popping the extra portions into the freezer.
4. Unplug. If there are things in your house plugged into the wall and you aren’t using them, unplug them. Many items, like computers and phone chargers, draw electricity whether they’re on or not. Plug it in when you need it, then unplug it when you’re done.
5. Check your thermostat. Setting your thermostat just a few degrees higher or lower than normal can help save a chunk of money on your energy bill. If you take the weekend off, turn the thermostat off at the office.

These are just some of the many ways to save money and stretch your dollar a bit.

We all need to relax every now and then. Relaxation, stress relief and improved health go hand in hand, and we all want to be healthy and performing our best. However a massage or spa weekend or non-working vacation is not always something we can squeeze into our budgets, much less our busy schedules.

What if we want to find some simple ways to relax without breaking the bank? There are many of them out there and it’s easier than you think!

Here is a list of ideas for zero cost ways to relax:

1. Light Exercise. A great way to relax is getting some light exercise. This can mean going for a walk around the neighborhood or playing a low impact sport. Exercise has been known to help the body relax and engaging in non-intense exercise will help your mind to unwind as well.
2. Meditation. Taking up meditation is one of the most relaxing activities you can engage in for free. All you need to do is sit in silence and focus on your breath. When negative thoughts arise, acknowledge them, and then let them go. Try doing this for 5-20 minutes each day.
3. Take a Nap. Babies and toddlers aren’t the only ones that can benefit from a nap! You may even feel relaxed and rejuvenated after a simple 15-minute snooze. You don’t need to completely fall asleep to benefit from this activity.
4. Shoot the Breeze. Go to a friend’s house or talk to a friend on the phone. Chances are you have one of those friends that you can chat with as if no time has gone by since you last talked. Old friends usually provide great opportunities to talk about the good old days.
5. Listen to Music. Grab the MP3 player and chill out with some great tunes. Pick out a group of songs that you find especially relaxing or rejuvenating. Classical and other light songs usually work best for naps, while music you just got to dance to is great for replenishing your energy during a long day.
6. Read a Book. Go check out a new book from the local library and start reading. It may even be a fun activity to read one of your favorite books over again.
7. Take a Hot Bath. Take a hot bath or shower. If you’re taking a bath, add in bubble bath soap, play some music you enjoy, and remember to turn off your phone ringer. This is a simple way to have some peaceful time just for you.
8. Look at Old Photos. Bring out some old photos from your childhood or the photos from a fun trip you took. Remembering some of your treasured moments will make you smile and relax for sure.
9. Play Board Games. When was the last time you played your favorite board game? Dust off the old Monopoly or Scrabble, prepare some snacks, and play a few games with your family or partners. Incidentally this is also a great team building activity for you and your employees. It’ll be fun for all!
10. Daydream. Allow your mind to wander and dream. Escape to where you’d like to travel one day. Think about what your life will be like in the next 5, 10, or 15 years and write these thoughts down in a journal for you to read later.

Endless Possibilities

These are just 10 simple ideas when it comes to relaxing the zero cost way. Stay creative and remember that it’s okay (and healthy) to not be in motion every second of every. You can either hang around doing some self-reflection, or you can hang out with friends or family, whatever it is, do something fun!

I just paid a bunch of vendor bills using credit memos that we have on file with that Vendor. There was a little left over on the final invoice, which was paid by check. However, the check stub only lists one invoice and one credit memo, but I know that’s not right.  How do I get a list of all the other invoices that were paid using the credit memos?

There’s no built-in/easy way to do it. It will require that you create and customize your own report to give you exactly the data you’re looking for and nothing else.  Here’s how:

• Do a “Find”  (Ctrl-F)  and go to the Advanced tab
• then click on “Date” in the Filter list and select “This week,” “This month,” etc., or choose the specific date you recorded the transactions
• then click on “Name” in the Filter list and select the name of the Vendor you’re working with
• then click on “Transaction Type” in the Filter list and select “Multiple”
• then in the “Multiple” screen select Bill, Bill Payment, and Bill Credit
• then go back to the main Find window and select “Paid Status” in the Filter list
• then check the button next to “Paid”

That should show you all the bills that were paid to that Vendor, and their corresponding payment method, whether by Credit Memo or Check.

Click the “Report” button to the right of the screen, and it will give you a printable report. You can also “Memorize” it (button at the top), in case you might need to perform a similar search in the future, for this or any other Vendor. You can further customize the report by clicking on the “Modify Report” button, also at the top of the screen.

-Veronica

Q: I noticed that Owner’s Draw is not showing up in the expense column of the P&L statement, is there a reason why?

Treatment of an owner’s compensation is determined by what type of entity/taxation structure your business is operating under.

When you are operating as a single-member LLC (taxed as a Sole Proprietor), Owner’s Draws are not considered Expense transactions. They are Equity transactions, which show up on the Balance Sheet, not the Profit & Loss.

In a single-member LLC (as well as a partnership LLC), all the profits/losses of the business flow through to your personal tax return and are considered to be the “Owner’s Equity” in the company. If you decide to take money out of the company, it is not considered an Expense — just as if you decide to put money into the company, it is not considered Income.

If your business entity were a Corporation or an LLC taxed as Corporation, then you would be taking a Salary instead of Draws. In that case your Salary, as well as all your company-paid Payroll Taxes, would show up as Expenses on the Profit & Loss.

If you really want to include your compensation on the P&L, we can create an Expense account for “Management Fees,” which will reflect all the Draws you take throughout the year. At the end of the year, we would need to make an adjustment to move that “Expense” back over to the Equity section of the Balance Sheet, since it is not allowed to be included as an Expense on your Federal Income Tax return.

I know this can be a difficult concept to grasp right offhand — but then again, so is most Tax Law. Let me know if you need any further explanation…

-Veronica